House, Senate reach agreement of Fiscal Year 2022 budget

Work concluded last week on the Fiscal Year 2022 budget, as the House and Senate reached agreement. The General Fund budget will spend $8.1185 billion in the year beginning July 1. Once again, the House ensured the state spends less than it collects in revenue. The budget spends 97.66% of the ongoing revenue the state is expected to be collected in Fiscal Year 2022. This is an increase of $291 million over the current fiscal year.

Even with the growth in spending, the state’s accounts will be in very good shape under the budget. Both the Cash Reserve Fund and the Economic Emergency Fund will be filled to their maximum level. The Taxpayer Relief Fund will have $316.4 million in its account, although that number may be higher as FY 2021 revenue continues to come in at a higher rate than the Revenue Estimating Conference has projected. And the FY 2022 ending balance will be $400 million.

The state of Iowa’s fiscal picture continues to be bright, thanks to the strong, sensible leadership shown by the House over the past 11 sessions.